Purchase Price. (1) Effective October 1

Effective October 1, 1991, the sale at retail or usage of employment company services goes through tax. (1) An employe reporting to operate at a location in this Commonwealth goes through tax. (2) An employe reporting to operate at a place beyond this Commonwealth is exempt to tax, unless the employe is appointed to work in this Commonwealth. (3) If the employe lies in this Commonwealth, it is presumed that the employment firm service undergoes tax unless documents supports the reporting to a location beyond this Commonwealth. (c) Examples of taxable services. The following are examples of taxable employment service services: (1) A Pennsylvania resident contacts a Pennsylvania supplier and is positioned with an employer at a location in this Commonwealth. (2) A Pennsylvania resident contacts an Ohio supplier and is put with a company at an area in this Commonwealth. (3) A Pennsylvania employer contacts a supplier outside this Commonwealth and accepts an employe for its location in this Commonwealth. (4) A New york city resident contacts a New York supplier and is put with an employer at a place in this Commonwealth. (5) A Pennsylvania supplier paid on a hourly rate interviews and advises a prospective employe to a company. (d) Examples of services which are not employment service services. The following are examples of services which are not employment service services: (1) A Pennsylvania resident contacts a Pennsylvania vendor and is positioned with an employer at an area outside of this Commonwealth. (2) A Pennsylvania resident contacts a New York supplier and is placed with an employer in New Jersey. (3) A New york city resident contacts a Pennsylvania supplier and is placed with an employer at a place in New York. (4) A Pennsylvania employer contacts a vendor outside of this Commonwealth and an employe for its out-of-State area. (e) Purchase rate. (1) Effective October 1, 1991, through December 31, 1991, the purchase cost of employment firm services based on tax is the gross charge. (2) Effective January 1, 1992, the purchase price of work agency services based on tax is the service charge if the employe expenses are individually specified; otherwise, the gross fee goes through tax. (3) If the purchase price is canceled or renegotiated, tax is due on the adjusted purchase price. If a change to the tax happens, the supplier is allowed to balance out the adjustment against current tax liabilities. (4) If the purchase cost is paid on an installation basis, the tax is due on the complete purchase cost and is payable at the time the purchaser accepts the agreement or within one month of acceptance of the contract. (f) Exclusions. (1) Employment agency services are exempt if bought by qualified charitable companies, volunteer fire business, religious companies and nonprofit instructional organizations, other than if utilized in an unrelated trade or company. The services are likewise exempt if acquired by the Federal federal government or its instrumentalities; or the Commonwealth, its instrumentalities or subdivisions consisting of public school districts. The manufacturing, mining, processing, utility, farming, dairying, farming, gardening or floriculture exclusion does not apply. (2) Employment services provided by theatrical work firms or movement image casting bureaus. (3) Farm labor. (4) A supplier of employment service services might declare the resale exemption upon its purchase of concrete personal effects which is transferred to its buyer or a 3rd party in the efficiency of its work agency services. The vendor may likewise acquire employment service services from another provider which the supplier resells to its consumer. The supplier might not declare the resale exemption upon its purchase of administrative products or the purchase of another taxable service which it might use in the efficiency of its employment service services.
Source

The arrangements of this § 60.5 adopted January 8, 1993, efficient January 9, 1993, 23 Pa. B. 182.

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